Does Buying In A Live Auction Make Sense

At an auction held earlier today in Mountian View CA the following properties were auctioned:

453 N Rengstorff Ave #4, Mountain View CA 94043

38500 Paseo Padre Parkway #308, Fremont CA 94536

3300 Wolcott Common #212 Fremont, CA 94538

The Auction was held at the first property address but all three properties were auctioned.

Besides several guidelines, instructions, and disclosures the most important thing to know is that there is an additional 5% fee on the top of the winning bid (not including closing costs). It was also stated that the buyer cannot sell the property for more than 120% of the purchase price (winning bid) in the following 3 months.

My goals for these auctions were:

Check the property, its condition, and the areacommunity.

See how many people show up.

See how low below market a property is sold at an auction.

The Property

I was only able to see the first property in the list. It looked just fine. Carpets were in ok shape. Kitchen seems relatively new. All seemed to be in order and in move-in condition, at least from the quick look I took.

Participants

About 30 people showed up to the auction. But it seemed only 5 or 6 actually got involved in the bidding.